The recent Opportunity Industry Analysis and Opportunity Assessment, 2016-2026 for Automotive Repair and Maintenance Services Market predicts the major trend likely to govern automotive repair and maintenance services market to be remote diagnostics. The segment analysis shows that increasing annual mileage per vehicle is estimated to contribute significantly to the growth of revenue for maintenance and services
- Statista lists the number of vehicle registrations to be at 269 million.
- The North American automotive repair and maintenance services is estimated at $130,389,130 (2017)
- The automotive dealership segment opportunity is expected to grow to an estimated $110,949,000 in 2027.
Main Competitor – There is only one true competitor in the marketplace, but they have yet to introduce their much-touted product: Connected Maintenance from SiriusXM/CDK. It was due to be released to automotive dealers this past summer 2018. So far, the product has not come to fruition
Connected Maintenance utilizes the OBD sensor from Automatic, a company SiriusXM acquired in 2017. Automatic is still sold as a direct to consumer product, and while their Pro version has 3G built in to the device, it does not feature any dealer connectivity.
Other competitors that offer similar services – Fixed is the only similar product in the marketplace, but it too does not feature dealer connectivity. It offers a mechanic hotline for $2.50/month, as well as a Roadside Assistance program for $39/year.
Companies that offer car maintenance and services that could be potential competitors with an opportunity to pull market share with an innovative disruptor are listed below. These organizations do not yet offer technology that can diagnose vehicles remotely.
- Jiffy Lubes International Inc.
- Asbury Automotive Group Inc.
- Sumitomo Corporation
- Belron International Ltd.
- Driven Brands Inc.
- Goodyear Tire & Rubber
- Firestone Complete Auto Care
- Monro Muffler Brake Inc.
- Ashland Automotive
- Carmax Autocare Center
- Timely Service reminders – the Car Care Council reports that routine maintenance is not a priority for drivers, but is the key to keeping a car in good shape.
- 25%of cars had low or dirty engine oil.
- 13%had low or contaminated brake fluid.
- 18%had dirty air filters.
- 17%had inadequate cooling protection or low coolant levels.
- 16% needed new windshield wiper and 27%had low or contaminated washer fluid.
- 18%needed new belts
- Overall, 89%of vehicles needed at least one service or repair.
- Convenience – Nielson reports that 27% of consumers wish there were more products that make lifestyle easier